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Africa|blasting|Coal|Mining|OPENCAST|PROJECT|Projects|Underground|Operations
Africa|blasting|Coal|Mining|OPENCAST|PROJECT|Projects|Underground|Operations
africa|blasting|coal|mining|opencast|project|projects|underground|operations

Menar coal projects, South Africa

20th March 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Menar coal projects.

Location
Gauteng, KwaZulu-Natal and Mpumalanga, in South Africa.

Project Owner/s
Menar.

Project Description
Menar expects to produce 20-million tons of coal a year from 2021/22.

Several projects are proposed, including:

  • the Palmietkuilen project is located near Springs in Gauteng. It will be an opencast mine producing 600 000 tons a month of coal at steady state production with a life of mine of about 20 years.
  • the De Wittekrans project, located south of Hendrina, in Mpumalanga, which will be an opencast and underground operation, with a 22-year life-of-mine (LoM), based on run-of-mine (RoM) production of 250 000 t a month.
  • the Witfontein underground and opencast coal project, north-west of Bethal, in Mpumalanga, which has an estimated LoM of 9 years, based on RoM production of about 100 000 t a month.
  • the Riversdale Anthracite Colliery project, is located in Vryheid, KwaZulu-Natal will be an underground project with a 6 year LoM, based on RoM production 30 000 t a month.
  • the Springfield opencast project, in Vereeniging, Gauteng, with an LoM of about 36 years, based on RoM production of about 600 000 t a month.
  • the Driefontein opencast project, in Middelburg, Mpumalanga, with an LoM of about 8 years based on RoM production of about 50 000 t a month.
  • the Koppie underground project, in Bethal, Mpumalanga with an LoM of about 20 years, based on RoM of about 150 000 t a month.
  • the Birmingham underground project, in Hendrina, Mpumalanga with an LoM of 13 years based on RoM production of 300 000 t a month.
  • the Kusipongo underground project, outside of Piet Retief, Mpumalanga with LoM of in excess of 38 years based on a RoM production of 125 000 t a month.

Menar, through its Canyon Coal subsidiary, has already ramped up the Khanye Colliery, in Bronkhorstspruit, Gauteng, which is producing 2.4-million tons of coal a year. Hakhano Colliery – the group’s first opencast mine – processing plant will be restarted in mid-2021. once a new nearby mining project receives the required licenses.

Mining operations started at the Phalanndwa Colliery Extension following the first large-scale blasting of coal ore on 17 Jul 2019. The extension project is anticipated to extend the life of mine to 2025. Once in steady state production, the project will produce on average of 120 000 t a month of run-of-mine (RoM). Phalanndwa Colliery extension projects employs 200 people.

Potential Job Creation
The Menar coal projects are expected to create 5 600 jobs, including direct employment of 320 jobs at the Palmietkuilen project; 430 jobs at the Wittekrans project; 200 jobs at the Witfontein coal project; 200 jobs at the Riversdale Anthracite Colliery; and 400 jobs at the Springfield opencast mine.

The operating Khanye Colliery employs 400 people 

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Menar plans to invest R7-billion in coal projects from now to 2022, R1.5-billion in both the Palmietkuilen and De Wittekrans project; R1.5-billion in the Springfield project; R700-million in the Witfontein project; R1-billion in both the Birmingham and Koppie projects and R300-million in the Riversdale Anthracite Colliery.

Planned Start/End Date
De Wittekrans project is anticipated to start production during the third quarter of 2020.

Palmietkuilen project is anticipated to start production by fourth quarter of 2020.

Development of the Riversdale project will also start towards the end of 2020.

Witfontein project is anticipated to start production in 2021.

Springfield project is anticipated to start production in 2021.

Development of the Birmingham and Koppie projects will start in 2022.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Menar, tel +27 11 783 7996 or email info@menar.com.

 

Edited by Creamer Media Reporter

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